Fuel prices and higher transportation costs

The main cost of shipping lines is the bunker. Oil and bunker prices have increased for months and reaching the highest levels since 2014, impacting deeply the carriers. Some emergency bunker surcharges or increases of the bunker adjustment factor (BAF) are going to be implemented and will increase the transportation costs.

That situation may continue because the demand gets stronger with fairly good worldwide forecasts, more oil demand from the emerging & developing countries looking to par with the OECD standards and the difficulties faced by some oil exporting countries like Venezuela or tensions in the Middle-East especially if embargo is decided against Iran.

As a matter of fact, it is likely to consider some higher transportation costs for the second semester.

More to read :

https://www.maerskline.com/en/news/2018/05/23/emergency-bunker-surcharge
https://www.msc.com/fra/notices/2018-may/temporary-emergency-bunker-surcharge
http://www.cma-cgm.com/news/2047/cma-cgm-group-announces-the-implementation-of-emergency-bunker-recovery-measures